Renovations Underway at Cedar Hotel, Holiday Inn Select Memphis East and One Commerce Square
- Aug 05, 2011
The real estate industry in Memphis is undergoing a facelift these days, as it sees the renovation of several of its most illustrative pieces.
The Cedar Hotel, located on East Brooks Road in Whitehaven, just 1.7 miles away from the Memphis International Airport and in close proximity to Elvis’ Graceland, is currently undergoing significant remodeling, which is slated for completion by January 2012. The final restoration costs are expected to rise to approximately $3 million, less than half of the initial sum estimated for the job, as the property was in much better shape than anticipated. Cedar Street Hospitality had acquired the 247-room hotel, formerly known as the Memphis Plaza, at auction for $1.55 million last fall. The Chicago-based company specializes in acquiring, redeveloping, and stabilizing distressed or failed hotels, motels and mixed-use assets located in desirable, high barrier-to-entry locations in the United States in primary and secondary submarkets.
The Cedar Hotel was the first plunge into the Memphis market for company owners and real estate brokers Jay Michael and Alex Samoylovich. “I looked at the deal, and it seemed under-priced,” Jay Michael told the Commercial Appeal. “My business partner and I couldn’t get a flight down that night so we drove down and bought it the next day. I’m still thankful that I did it, but it’s a daunting task.”
In other real estate news, Holiday Inn Select Memphis East, a 243-room hotel sitting on 4.56 acres at 5795 Poplar Avenue, was sold to Atlanta-based Noble Investment Group in a special warranty deed, according to the Daily News. Repairs are planned for the 133,932-square-foot hotel that was built in 1986. It was closed as of last month when Hospitality Properties Trust, its former owner, announced termination of its management contract.
Over $20 million in renovations are also in store for One Commerce Square. The 30-story skyscraper, the fourth-tallest building in Memphis, is seeking LEED certification as part of the makeover process. Pinnacle Airlines Corp. will occupy floors 2-14 of One Commerce Square and will be soon joined by a bank and a restaurant.